Laced Europe Ltd, a British online footwear marketplace, has been rescued after entering administration last month. The company, which operates a platform for trading rare trainers and luxury goods from brands including Nike, Adidas, New Balance and Supreme, was placed into administration on September 22.
Administration and rescue
Terri Mulgrew and Michael Kiely of Quantuma were appointed as joint administrators. The company had faced numerous challenges in recent years, with a period of growth followed by worsening market conditions. The business became dependent on achieving high transaction volumes to sustain its cost base after expanding its workforce, warehouse capacity, marketing and technology expenditure.
In 2022, declining consumer spending, inflation, heightened competition and rising courier costs impacted sales and profit margins. Management made efforts to cut costs, but ultimately the company exhausted its working capital. It proved unable to secure additional investment and could no longer satisfy its liabilities, resulting in insolvency.
Pre-pack sale completed
Following the appointment of administrators, a pre-pack sale has been completed, safeguarding all jobs and ensuring the future of the business. The sale has resulted in all seven employees being transferred to the purchaser, A Beauty Inc Ltd, part of the AA Investments group, under TUPE regulations.
A spokesperson for the AA Investment Group said: "Laced is a strong brand with a real community behind it. We are proud to continue this journey and to welcome the team into the AA Investments family."
"Customers and sellers can continue to use the platform as service is coming back step by step while we work on its next chapter."
Positive outcome
Terri Mulgrew, joint administrator and associate managing director at Quantuma, added: "I am very pleased to have achieved such a positive outcome for this online retailer, ensuring that all employees' jobs have been saved."
"We are delighted to have secured the long-term viability of the business, allowing it to continue its journey. We wish the team every success in their next chapter."
The company's turnover was reported as £9 million this year. Founded in 2015, it helped connections between buyers and sellers of exclusive items.
